A second General Motors plant in Joinville, in the southern Brazilian state of Santa Catarina, will start producing gearboxes (transaxles) from 2014. The new factory will be located beside a new engine factory due to start production by the end of this year.

The R$710m ($400m) investment – twice that spent on the new engine plant – will create 300 new jobs. The transaxle plant is three years behind schedule due to the financial troubles faced by the parent US-based company between 2008 and 2009.

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The additional 150,000 unit annual transaxle capacity will replace imports from Europe where one half of production will be shipped, with the rest used in Brazilian-made cars. The transaxle will be a six-speed model with higher torque capacity than current, locally produced gearboxes.

GM did not reveal the models to be fitted with the new transmission although the Chevrolet Cruze saloon, already on sale, and the hatchback version to be launched next month are the only models with six-speed manual gearboxes that GM makes in Brazil so far.

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